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View Full Version : Oil Nearing $87



silversurfer1
5th April 2010, 10:56
This article says oil rising due to "improving economy"?? Is THAT the REAL reason? Yes oil is rising BUT is THIS explanation OR more government bullshit??

http://www.reuters.com/article/idUSTRE6142V820100405

DaleFromCalgary
5th April 2010, 12:47
Real reason is mostly speculation, although not by much, only a couple of dollars. Most actual physical oil is sold at over-the-counter prices negotiated between producer and refinery, with just a passing nod to the futures prices. My oil is mostly hedged at $75 to $80, with some at 95% WTI futures monthly median price. Natural gas is still a disaster, and we are flowing only enough to meet minimum contractual obligations to the pipeline operator.

The economy is not improving in NAFTA, but the Chinese are buying. They don't deal with small-timers like me but I talked to a downstream engineer at the Athabasca Tar Sands and he said they are sniffing around for more long term deals. If the American government doesn't watch out, ten years from now there could be more syncrude flowing west than south.